New Delhi, Oct 15, 2026 14:33 IST Fairfax Financial Holdings plans to bring its existing Indian financial investments under IDBI Bank, combining its interests in Go Digit and IIFL Capital Services with the lender to create a diversified financial services group.
The proposed restructuring will involve transferring Fairfax’s 49 percent stake in Digit and 30.2 percent stake in IIFL Capital Services to IDBI Bank, making the lender the holding company for all three businesses, the company announced in a statement.
Combining IDBI Bank, Digit, and IIFL Capital would create an entity well-positioned to participate in the continued growth and success of Indian markets, according to the firm, which anticipates meaningful and significant benefits for Indian consumers and businesses.
The proposed group would feature operations spanning banking, insurance, investment banking, and wealth management. This development follows official approval for the sale of a 60.7 percent stake in IDBI Bank to Fairfax in a transaction valued at Rs 52,878 crore, or approximately $5.56 billion, marking one of India's largest cross-border banking deals.
Additionally, Fairfax is working to raise its stake in IIFL Capital Services to 51 percent through an open offer. The broader restructuring remains subject to clearance from relevant banking and insurance regulators.
Fairfax stated that it does not foresee any alterations to the governance, management, or operating structure of Digit or IIFL Capital Services as a consequence of the plan.
IDBI Bank Chief Executive Officer Rakesh Sharma will lead the proposed combined entity. NS Kannan, former managing director and CEO of ICICI Prudential Life Insurance, is slated to serve as chairman, while former CSB Bank CEO CV Rajendran will also assume a leadership role.